Embotelladora Andina SA · BCS:ANDINA_A
Embotelladora Andina SA — 4Q19 Earnings Presentation
28 slides from Embotelladora Andina SA's earnings presentation, 2020
Slide 1: Corporate Presentation 4Q19
Corporate Presentation 4Q19 . , x ee a e @ 2 < \ ee . a er es a on: SN pers . \ \ x is i " * {oo | | x —— | | Se =. rf eS a 0 e . i? \ \ °
Slide 2: #goPaperless
In line with our constant effort to improve Agenda communication with the financial market and at the same time reduce waste generation, Page we have developed the Coca-Cola Andina IR App. This is an investor relations application, and we will begin a 100% digital communication plan of our Financial
Slide 3: 1. Company Description
1. Company Description Agenda Page [CLIENT NAME]
Slide 4: History
History Merger with KO Polar (incorporation of new During April we began Agreement Coca-Cola System Andina Andina listed on territories in Argentina, distributing AdeS for joint venture (50/50) becomes the the NYSE. Chile & Paraguay). products, reinforcing distributing for the water and Coca-Cola Fr
Slide 5: A regional and diversified platform (FY19)
A regional and diversified platform (FY19) Volume Revenues Adjusted EBITDA 9% 9% 12% 32% 34% 38% 24% 22% 16% 35% 35% 34% 746 MM UCs US$2,495 MM US$491 MM Chile Brazil Territories: Antofagasta, Atacama, Coquimbo, Territories: majority of the State of Rio de Metropolitan Region, San Antonio, Cacha
Slide 6: Ownership (As of December 31, 2019)
Ownership (As of December 31, 2019) Controlling Group 43.0% 55.7% 33.1% Series A Series B Others 35.9% Coca-Cola 7.3% ADRs 2.4% Chilean Pension Funds 11.4% The Controlling Group is composed of 5 Chilean families with equal parts, that have a shareholders’ agreement which includes TCCC. Series A elec
Slide 7: Superior manufacturing and logistics capabilities
Superior manufacturing and logistics capabilities Argentina Brazil 3 production facilities with a total 3 production facilities with a total of 21 lines of 28 lines ◦ Average utilization ranged from ◦ Average utilization range from 20.0% to 52.0% 34.1% to 79.2% 47 distribution centers 18 dis
Slide 8: Committed to Sustainable Development
Committed to Sustainable Development Generating Social, Economic and Environmental Value in all of our actions Source: Company filings and public releases 7
Slide 9: 2. Market Description
2. Market Description Agenda Page [CLIENT NAME]
Slide 10: Coca-Cola Andina at a glance: Market Structure
Coca-Cola Andina at a glance: Market Structure (As of December 31, 2019) Market Share Channel Mix Per capita 13% Consumption 65% 34% (8 oz. bottles) 251 44% 34% 24% 33 25 29% Soft Drinks Waters Juice and On premise Wholesalers Others Soft drinks Waters Juices and Others Supermarkets Mom and Pops Pro
Slide 11: Market Structure (As of December 31, 2019)
Market Structure (As of December 31, 2019) Market Share Per capita Product Mix Market Share Per capita Product Mix Consumption 6% Consumption 7% 10% 9% 63% (8 oz. bottles) 62% (8 oz. bottles) 257 49% 4% 45% 215 17% 18% 29 17 84% 19 19 80% 12 Soft drinks Waters Juices and Others Soft Drinks Waters Ju
Slide 12: Diversified brand portfolio across segments and geographies
Diversified brand portfolio across segments and geographies (As of December 31, 2019) Argentina Brazil Chile Paraguay SSDs1 Juices and other NCBs1 Water Beer Spirit Beverages2 Source: Company filings and public releases 1 SSDs: Sparkling Soft Drinks; NCBs: Non-Carbonated Beverages 2 The complete Dia
Slide 13: 3. Financial Highlights
3. Financial Highlights Agenda Page [CLIENT NAME]
Slide 14: Track record of profitability, Adjusted EBITDA growth, diversification and cash generation
Track record of profitability, Adjusted EBITDA growth, diversification and strong cash generation Sales volume (million UCs) Revenues (CLP$ mm) Argentina Brazil Chile Paraguay Argentina Brazil Chile Paraguay CAGR -2.3% 819.9 1,877,394 1,777,459 1,848,878 1,779,025 778.9 756.2 750.6 746.4 1,672,916 2
Slide 15: Solid Financial Position
Solid Financial Position Financial Debt (CLP$ mm) Financial Debt Summary (CLP$ mm) as of December, 2019 Short Term Financial Debt Long Term Financial Debt Banks Bonds Total Ch$mm 43,353 740,567 783,921 810,019 827,517 786,371 772,679 % 5.5% 94.5% 100% 743,749 783,921 Note: Banks includes: Bank, Leas
Slide 16: Solid Financial Position
Solid Financial Position Financial Ratios (I) Financial Ratios (II) Net Financial Debt / Adj. EBITDA Financial Debt / Equity Ratio (1) Net Financial Debt (2) / Equity Ratio Net Financial Debt / Adj. EBITDA (w/o MtM CCS) (3) 331.2 Debt Coverage Ratio (4) 10,0 7.5 7.7 9.5 5 8,0 1.0 0.9 6.9 0.9 0.9 0.9
Slide 17: Consolidated Financial Highlights (Billion CLP$)
Consolidated Financial Highlights (Billion CLP$) 2014 2015 2016 2017 2018 2019* 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 4Q18 4Q19* Total Volume (million UCs) 831 820 779 756 751 746 204 198 165 161 168 173 214 215 Net Sales 1,797 1,877 1,777 1,849 1,673 1,779 480 447 363 380 345 406 481 526 Operating Income 1
Slide 18: Consolidated Financial Highlights (Million US$)
Consolidated Financial Highlights (Million US$) 2014 2015 2016 2017 2018 2019* 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 4Q18 4Q19* Total Volume (million UCs) 831 820 779 756 751 746 204 198 165 161 168 173 214 215 Net Sales 3,151 2,868 2,627 2,848 2,569 2,495 797 668 581 556 521 572 704 697 Operating Income 32
Slide 19: Consolidated Balance Sheet (as of December 31, 2019)
Consolidated Balance Sheet (as of December 31, 2019, in million US$ and million CLP$) Million US$: Assets Liabilities and Equity Cash and Cash Equivalents 211 Current Financial Liabilities 54 Current Assets 502 Other Current Liabilities 496 Non current Assets + Others 2,319 Non-Current Financial Lia
Slide 20: Dividends and Market Cap (as of December 31, 2019)
Dividends and Market Cap (as of December 31, 2019) Dividend Distribution1 Market Cap (million CLP$) (billion USD) 4.2 3.4 3.3 2.7 2.6 85,475 85,475 75,537 67,586 53,671 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Dividend Yield2 2015 2016 2017 2018 2019 Series A 3.7% 3.5% 3.3% 3.0% 3.8% Series
Slide 21: 4. Strategy
4. Strategy Agenda Page [CLIENT NAME]
Slide 22: Expansion potential through organic and inorganic growth avenues
Expansion potential through organic and inorganic growth avenues Organic growth Inorganic growth Superior organic growth within the Key role in the consolidation process & portfolio Coca-Cola system development for the Coca-Cola system in Latin America Growth in SSD business Portfolio expansion
Slide 23: 5. Appendix
5. Appendix CttGplg NDINA
Slide 24: Argentina: Main Financial Highlights (Local Currency)
Argentina: Main Financial Highlights (Local Currency (million)) 2014 2015 2016 2017 2018 2019 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 4Q18 4Q19 Sales Volume (million UCs) 229 234 219 211 202 178 60 49 43 38 46 40 54 51 Net Sales 6,541 8,903 11,343 14,203 22,441 31,566 7,324 6,177 5,901 5,204 6,644 6,310 9,314
Slide 25: Brazil: Main Financial Highlights (Local Currency)
Brazil: Main Financial Highlights (Local Currency (million)) 2014 2015 2016 2017 2018 2019 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 4Q18 4Q19 Sales Volume (million UCs) 306 291 266 249 249 259 65 66 56 58 56 62 72 73 Net Sales 2,959 3,059 3,037 2,976 3,062 3,467 809 877 683 754 668 837 901 999 Operating Income
Slide 26: Chile: Main Financial Highlights (Local Currency)
Chile: Main Financial Highlights (Local Currency (million)) 2014 2015 2016 2017 2018 2019 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 4Q18 4Q19 Sales Volume (million UCs) 232 234 232 231 231 240 62 65 50 50 52 56 68 69 Net Sales 492,072 514,733 540,427 551,873 570,939 608,952 147,712 156,876 126,228 132,757 130,5
Slide 27: Paraguay: Main Financial Highlights (Local Currency)
Paraguay: Main Financial Highlights (Local Currency (million)) 2014 2015 2016 2017 2018 2019 1Q18 1Q19 2Q18 2Q19 3Q18 3Q19 4Q18 4Q19 Sales Volume (million UCs) 63 61 62 65 68 69 18 18 16 15 15 16 19 21 Net Sales 1,010,735 1,033,215 1,107,678 1,227,001 1,337,989 1,405,584 353,045 354,575 313,475 302,
Slide 28: Corporate Presentation 4Q19
Corporate Presentation 4Q19 . , x ee a e @ 2 < \ ee . a er es a on: SN pers . \ \ x is i " * {oo | | x —— | | Se =. rf eS a 0 e . i? \ \ °